Tesla is suspending production at Giga Shanghai for two days, Reuters reports, citing a notice sent internally and to suppliers. The reason? Unclear, but China is tightening its Covid restriction to help slow down the spread of its latest outbreak.
Giga Shanghai operates 24/7 and Reuters noted that both suppliers and employees were told on Wednesday that production would be suspended on Wednesday and Thursday. Reuters reviewed the notice, which didn’t have a reason for the suspension of production.
ABC News has reported that China ordered 51 million people into lockdown and that the country is facing its worst covid crisis since early 2020.
Giga Shanghai produces the Tesla Model 3 and Y and is a critical export hub to Europe as well as Australia and Asia. The factory averages around 2,108 vehicles daily, Reuters noted. Two anonymous sources briefed on the notice told Reuters that this production suspension applied to Tesla’s general assembly lines.
The article added that authorities in Shanghai have been asking residents to not leave home or work for the next 48 hours to as long as 14 days as they conduct Covid tests and/or contact tracking.
In the notice to its suppliers, Tesla asked for estimates of how many workers were needed to achieve full production. The company also asked for details of any workers who have been affected by the Covid restrictions. In addition to that, suppliers were asked to prepare places to live, sleep, and eat for the workers at the factories. The arrangement is similar to the country’s closed-loop management process.
Another source told Reuters that Tesla was made aware by a supplier last weekend that its production was affected by Covid measures. They said that Tesla’s stockpiles could only last for two days.
It makes sense that Tesla is suspending its production temporarily in light of the current situation in China. I have a feeling that we might be repeating 2020 in 2022, or “2020, too.”